United Capital Plc braced the lockdown in the second quarter to sustain double-digit growths in key performance indices in the first half with net profit rising by 16 per ceUnited Capital grows net profit by 16% to N1.91bn in H1to N1.91 billion.

Key extracts of the interim report and accounts of United Capital for the six-month period ended June 30, 2020 released at the weekend indicated that total turnover rose by 37 per cent to N4.45 billion in first half 2020 as against N3.24 billion recorded in comparable period of 2019. Operating income leapt by 45 per cent from N2.82 billion to N4.10 billion. Profit before tax improved by 14 per cent to N2.27 billion as against N1.99 billion. After taxes, net profit stood at N1.91 billion in first half 2020 compared with N1.65 billion in first half 2019. With these, earnings per share increased from 28 kobo in first half 2019 to 32 kobo in first half 2020.

Further analysis showed that the total assets expanded by 46 per cent to N219.73 billion in June 2020 as against N150.46 billion recorded by the year ended December 31, 2019.                 Total liabilities however increased by 54 per cent from N130.88 billion in December 2019 to N201.60 billion in June 2020. Shareholders’ funds thus dropped marginally by 7.5 per cent from N19.59 billion in December 2019 to N18.12 billion in June 2020.

The increase in total liabilities was due largely to 95.22 per cent growth in managed funds, 22.56 per cent increase in current tax liabilities and 15.96 per cent rise in other liabilities. The decline in shareholders’ funds was due to decline in retained earnings and considerable increase in the negative other reserves.

The top-line performance was driven by significant increases across the income lines. Net interest margin rose by 347.65 per cent while net trading income and fee and commission incomes grew by 85.03 per cent and 77.15 per cent respectively.

Group Chief Executive Officer, United Capital Plc, Mr. Peter Ashade,  said United Capital remains a leader in the financial and investment services space as it continues to leverage on innovation, technologies and bespoke services to meet private and public sector’s finances.

He noted that while the COVID-19 pandemic has lasted than envisaged and caused greater speculations of global recession and slower global recovery from the pandemic, the company’s well-articulated plans have ensured that it was still able to deliver growth.

“The Nigerian economy has been greatly affected by the pandemic as seen in the increasing depreciation of the exchange rate, inflation rate and other economic indicators. As we stated at the release of our last quarter result, our business was not immune to these challenges; however, the group was able to endure the challenges- thanks to the well-articulated and diligent implementation of our plans set out last year,” Ashade said.

According to him, with its well-articulated plans, business continuity plan in economic crisis and solid risk assessment framework, the group was able to deliver increased revenue of over 37.26 per cent, increased pre-tax profit of 14.10 per cent and profit after tax growth of 15.98 per cent.

He pointed out that during the first half, the company successfully issued its N10 billion Series 1 bond under the N30 billion medium-term debt programme with over 24 per cent oversubscription.

“Going into the remaining half of the year, we remain assiduously committed to deliver greater returns to our shareholders, by constantly reviewing our strategy in the light of global and domestic happenings, ensuring that we provide value to all our stakeholders from time to time,” Ashade said.

He outlined that in line with the company’s initial strategy for the 2020 business year, it shall continue to push further its arket diversification and cost-optimisation initiatives as well as implement phased automation of its business processes while upholding its commitment to ensuring a significant improvement in value delivery to all stakeholders.